- Southeast Asian healthtech startups have raised $1.5 billion over the past five years, with funding peaking at $515 million in 2023.
- The healthtech sector is shifting towards B2B models and more established companies, with over 80% of top firms founded pre-pandemic.
According to a report by Healthcare Asia, Southeast Asia's healthtech startups have secured about $1.5 billion in funding over the last five years, making up 87% of the industry's total capital raised. In 2023 alone, the sector hit a funding peak of $515 million, with early-stage investments contributing $308 million of that total.
After the pandemic, funding in the HealthTech sector steadily increased, reaching its highest point in 2023. However, other areas like healthcare booking platforms, employee health IT, and fitness & wellness tech saw significant funding growth in 2021, but this trend reversed, with funding declining afterward.
Not to mention, on average, it takes about 2.8 years for a healthtech startup to secure seed funding after it is founded.
In Southeast Asia, the 2023 Health Tech 50 highlighted significant growth in areas like research, treatment, and telehealth, especially in Singapore and Indonesia. Singapore leads the region with over 400 HealthTech startups, while Indonesia, Malaysia, and Thailand are also seeing notable growth.
B2B (business-to-business) models are more dominant, increasing from 42% to 48% of the market, while D2C (direct-to-consumer) models saw a slight decline.
Additionally, the sector is shifting towards more established companies, with over 80% of the top HealthTech firms founded before the pandemic. Despite financial challenges, regional governments are pushing for more digital health solutions to meet rising healthcare demands.
Edited by Harshajit Sarmah
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